❓ Hon Amber-Jade Sanderson asks about the potential costs to the State if the Midland Health Campus Services Contract Agreement were terminated for convenience, specifically regarding the Convenience Termination Payment and the Private Patient Facility Termination Payment. The answer outlines the complexities and variables involved in calculating these costs, stating that a specific quantum cannot be provided.
AnsweredQoN 2987Legislative Council
QuestionView source ↗
I refer to the Midland Health Campus Services Contract Agreement, noting the provisions of clause 35.1(h), Confidentiality, which allows the State to 'at any time disclose the Confidential Information and Commercial in Confidence Information and any other information in connection with the Project: (v) to satisfy the requirements of parliamentary accountability', and I ask if the State were to terminate the services agreement for convenience during the operational phase in accordance with clause 29.1, what amount, or range of amounts, would the State have to pay in order to cover: (a) the Convenience Termination Payment; and (b) the Private Patient Facility Termination Payment?
AnswerView source ↗
Answered
19 May 2015
Responded by
Parliamentary Secretary representing the Minister for Health
Response time
28 days
In determining the quantum of required payments to the Operator by the State with respect to either or both of the Termination for Convenience of the Private Patient Facility and the Termination for Convenience of the Public Patient Facility, there are a number of possible permutations and combinations.
These are influenced by a range of factors including, but not limited to, whether the Termination for Convenience occurs in the Construction or Operational phase, and if the latter, during which time period/year it occurs.
The payment to the Operator in relation to a Termination for Convenience of the Private Patient Facility is significantly influenced by the cost of development of the facility in the pre-operational phase, or escalated written down value in the operational phase. It is also influenced by HR costs, reasonable break costs and insurance proceeds.
The payment to the Operator in relation to a Termination for Convenience of the Public Patient Facility is determined by a range of variables inclusive of compensation for loss of Operator Profit (OP) which is prescribed in the Agreement and varies according to the year of the Termination and CPI rates leading up to this time. Other variables that influence the quantum of this Termination payment include recompense for equipment purchased by the Operator and handed over to the State, certain prescribed redundancy payments for employees of the Operator, reasonable break costs and insurance proceeds.
Given the aforementioned variables, there isn't a specific quantum that is able to be provided in relation to the cost to the State of Termination for Convenience for either or both the Public Patient Facility and/or Private Patient Facility in the operational phase.
These are influenced by a range of factors including, but not limited to, whether the Termination for Convenience occurs in the Construction or Operational phase, and if the latter, during which time period/year it occurs.
The payment to the Operator in relation to a Termination for Convenience of the Private Patient Facility is significantly influenced by the cost of development of the facility in the pre-operational phase, or escalated written down value in the operational phase. It is also influenced by HR costs, reasonable break costs and insurance proceeds.
The payment to the Operator in relation to a Termination for Convenience of the Public Patient Facility is determined by a range of variables inclusive of compensation for loss of Operator Profit (OP) which is prescribed in the Agreement and varies according to the year of the Termination and CPI rates leading up to this time. Other variables that influence the quantum of this Termination payment include recompense for equipment purchased by the Operator and handed over to the State, certain prescribed redundancy payments for employees of the Operator, reasonable break costs and insurance proceeds.
Given the aforementioned variables, there isn't a specific quantum that is able to be provided in relation to the cost to the State of Termination for Convenience for either or both the Public Patient Facility and/or Private Patient Facility in the operational phase.
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